Money Laundering Case: Mumbai Court Denies Bail to IPS Officer’s Husband in ₹263 Crore Tax Refund Scam

Money Laundering Case: Mumbai Court Denies Bail to IPS Officer’s Husband in ₹263 Crore Tax Refund Scam

Issue: Whether Purushottam Chavan, the husband of an IPS officer and an accused in a high-profile money laundering case linked to a massive income tax refund scam, should be granted bail on grounds of serious medical condition and prolonged custody.

Facts:

• The accused, Purushottam Chavan (52), is the husband of an IPS officer.
• The case is a money laundering investigation initiated by the Enforcement Directorate (ED), linked to a ₹263 crore fraudulent TDS refund scam orchestrated by a senior tax assistant at the Income Tax Department.
• Chavan sought bail citing serious medical conditions that required specialist supervision and continuous care.
• The ED alleged that Chavan received ₹12 crore as proceeds of crime from a co-accused (Rajesh Batreja) after promising to use his contacts to assist in the ED case. Two police constables attached to his wife were also cited as witnesses.

Decision:

A special PMLA court denied the bail plea. The court ruled that the medical conditions could be adequately managed by the jail’s Chief Medical Officer or JJ Hospital.

Key TakeDowns:

• Gravity of Economic Offence: The court emphasized the seriousness of the crime, stating that the offense is a “serious economic offence affecting the socio-economic condition of society and the financial integrity of the nation,” which requires a stringent approach.
• Proceeds of Crime: The denial was based on the clear allegation that Chavan actively handled and benefited from the proceeds of crime (₹11-12 crore).
• Judicial Stance: The decision underscores the judiciary’s strict stance against high-value financial crimes, giving the gravity of the economic offense precedence over health-related considerations that can be addressed within the correctional system.